The Spanish government has imposed some demanding obligations on its regional governments, which will have to cut nearly 15 billion euros among themselves in 2012 in order to reduce their deficit to 1.5% of the GDP. It was 2.94% in 2011.
The requirement, nonetheless, will not be applied to each region equally. In reality, the lion's share of the budget cuts will be forced on a small group of regions: Catalonia, Andalusia, Valencia and Castilla-La Mancha. They are the farthest behind financially, and among them they will have to shave no less than 11.152 billion euros. This amount is more than 70% of the 15 billion euros that the national government wants all regions to cut this year.
Again, Catalonia will have to make the greatest sacrifice. In order to reduce its deficit to 1.5% from last year's 3.72%, it should apply at least 4.390 billion euros of major cuts to its public accounts. Catalonian leader Artur Mas has been cutting spending with true zeal since he took control of the Generalitat government in November of 2011. He has already reduced the Catalonian budget by 2.500 billion euros, even opening up savings from the healthcare copayment revenues, with the application of a one-euro fee for medical prescriptions. The measure will go into effect in May.
